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Board Should Be Ready to React to Disasters Quickly

When disaster strikes a co-operative or an association, the board must react quickly to implement damage control. A crisis management plan should already be in place, not created at the time it is actually needed. While practical problems need to be addressed ongoingly, sometimes the legal consequences of a disaster have far-reaching results. Therefore, crises of all size need a "legal preparedness strategy" in place.

A board should confer with its property manager and legal counsel to discuss crisis communications and planning issues. Even trained professional managers or experienced board members are not necessarily trained to understanding all of the legal ramifications and financial risks associated with certain situations.

It is the attorney’s responsibility to communicate with the board what legal services are available in the way of legal consultation and advice, so when a controversy arises, the board can then decide the need to seek legal advice. This allows the attorney to be brought in at the earliest possible stage to help limit the scope of the problem before it gets out of hand.

First, in the face of impending emergency, the board should meet and consult with its property manager. Then, if it appears that there are legal risks or potential liability, the association’s lawyer should be consulted. The board must realize that the attorney can sometimes help before a situation becomes a crisis; when it is still a minor controversy. Plans can then be initiated for the prevention of more serious problems. An example of advance pre-planning would be regular updating of rules and regulations, and frequent communication with all owners and residents to create an awareness of problem areas before they arise.

In order to prepare a plan to effectively respond to emergencies, a board must address:

Identifying a problem that is in fact a crisis.
How to effectuate an active and viable response.
Expeditiously handle the situation once the plan has been approved.
Preparing to deal with the interruption of essential services.
Showing compassion and assistance for the parties involved.
Presenting consistent and unambiguous communication.
Following up on the initial response(s).

When it is necessary to consult legal counsel, the lawyer’s job includes:

Establishing the scope of authority in which the lawyer can initiate action without going back to the board for further direction.
Analyzing the situation and making sure it is in fact a crisis and not an over-reaction to a problem.
Identifying who is the property spokesperson for the board and the extent of their authority.
Establishing guidelines and specifics for appropriate communication.
Diffusing the emotions as soon as possible.
Preparing appropriately drafted communications to be distributed to owners and any third parties (media, Village, police, etc.).
Recommending agencies, contractors, officials, etc. that can offer assistance.
Meeting as needed to direct strategy and refine tactics.
Sending concluding recommendations with advice in dealing with additional consequences or preventive techniques to avoid a repeat of the situation.

What is most important is that the board include the attorney as part of the "crisis management team" as much for the strategic planning as well as for legal solutions. Dealing with a crisis generally requires an instant analysis as to whether a bona fide state of emergency exists or whether a problem can merely be addressed in the ordinary course of business.

A "drop everything" mentality cannot be applied in every situation, because if everything is a crisis, then nothing is a crisis.

Lastly, the most important thing the attorney can do is be frank and not just tell the board what they want to hear, but offer good, sound, objective advice. By pre-planning and by utilizing a systematic approach to problem solving, the crisis itself can be contained, consequential damages can be minimized and legal expenses can be kept under control.